India Types of CorporationsIn India, the following are common forms of incorporation:
- Representative Office - an office that deals mainly with gathering information that is connected with the company.
The company may not engage in income-producing activities with Indian clients.
Authorization to set up the office is given by the RBI (Reserve Bank of India).
- Project Office - authorization is given by the RBI for a limited period and for the purposes of setting up a specific project.
- Branch - intended for foreign companies that are engaged in representation and commerce.
The branch is for business promotion and cooperation in India.
The branch may not engage directly in production but can transfer production to sub-contractors within India.
Authorization to set up the branch is given by the RBI.
- A limited company - foreign investors may found a limited company that will operate as a "joint venture" with Indian partners, or set up a subsidiary company that is totally controlled by the foreign investor.
The limited company may be a private company (2 - 50 members) or a public company (with a minimum of 7 members) according to the restrictions and provisions in Indian law.
Note: The information in this site is for general guidance only. Users of this site are advised to take professional advice before taking practical tax decisions.
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